# Proposal Draft for Lido to buy CVX

**URL:** <https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080>\
**Category:** Proposals\
**Created:** [October 20, 2022, 7:38am UTC](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080 "2022-10-20T07:38:55Z")\
**Posts on this page:** 1\
**Showing post:** 4

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**Author:** ![ErwinSmith](https://avatars.discourse-cdn.com/v4/letter/e/e274bd/32.png) [@ErwinSmith](https://research.lido.fi/u/ErwinSmith)\
**Post date:** [October 20, 2022, 10:47am UTC](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080/4 "2022-10-20T10:47:05Z")

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> **The Current Situation – stETH deep liquidity is important but Lido’s current incentives can only last 4 years.** Lido’s key value proposition is the readily available on-chain liquidity on stETH that it provides. However, [LDO currently spends ~4.5mn LDO (~$6.3mn) in emissions monthly](https://research.lido.fi/t/rewards-october-22-budget/2973)/54mn LDO ($75.6mn) in emissions annually to sustain these liquidity pools. While it is paramount that LDO maintains its core value proposition of having deep on-chain liquidity venues for stETH, it needs to work towards a sustainable solution for its stETH on-chain liquidity. [LDO treasury only has ~$260mn](https://debank.com/profile/0x3e40d73eb977dc6a537af587d48316fee66e9c8c) (mostly LDO with some stETH, DAI and ETH) which means at the current run rate, it would last less than 4 years before running out of incentives.

Deep liquidity is only a must pre-withdrawals, there’s no need to budget for years of liquidity rewards. Once withdrawals are enabled, LDO emissions should be redirected to other initiatives.

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_[View the full topic](https://research.lido.fi/t/proposal-draft-for-lido-to-buy-cvx/3080)._